Kenya uses AI to tax informal economy, SA insurance giant gives SA's medical data to Google

Weekly News Digest ...

Good morning, and welcome to this week’s issue of Africa AI News – Weekly News Digest.

This week we focus on applications, the most interesting being Kenya’s use of AI to analyse individual micro-transactions on popular mobile payments platforms to bring the informal economy into the tax net. Finance adviser Dr David Ndii put it rather pithily:

“Those in informal jobs live in the same neighbourhoods, drive similar cars, and send their children to the same schools as those in formal employment. The only difference is that they file nil returns.”

Another major application story is South African medical insurance giant Discovery turning its popular wellness and rewards platform Vitality into an AI beast that borgs everyone’s medical history onto the Google Cloud. Considering the repeated data breach scandals and Google leaking medical data and covertly sharing with undesirables, push-back has been strangely muted.

As mentioned last week, we have to make on call on continuing to publish each week. What do you think? Do you still want you weekly dose of African AI news? Just hit “reply” to this mail, or hit me up on LinkedIn.

On with this week’s issue!

/Roger

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Applications

Kenya to use AI to recover $8.6 billion in informal sector taxes

#Kenya #applications #tax — Kenya plans to deploy artificial intelligence to track and collect taxes from its informal economy, potentially recouping $8.6 billion annually. Government will leverage analysis of transactions on mobile money platforms like M-Pesa and Airtel Money, shifting from manual enforcement to algorithm-driven tax collection over the next two years. (Business Insider Africa)

Discovery and Google unveil Vitality AI

#SouthAfrica #applications #health — SA medical aid giant Discovery has launched Vitality AI in partnership with Google, marking a global rollout of a South African innovation. Built on Google Cloud, the system uses Discovery Health’s Personal Health Pathways platform to deliver personalised health insights, with a claimed 2.7 million exercise actions and R35 million in rewards amongst the 433,000 users. Surprisingly little privacy pushback so far. (BusinessTech)

South African firms set pace in ethical AI adoption, Kenya leads, too

#SouthAfrica #policy #ethics — South African companies are leading emerging markets in responsible AI use, driven by the Protection of Personal Information Act (POPIA), says a report by Indian biz-tech firm, Zoho. Everyone gets a gong, with Zoho saying Kenya is the AI adoption leader. Experts say ethics-first design is boosting, not slowing, innovation. (iAfrica)

Mozambique turns to AI for disaster early warnings

#Mozambique #applications #climate — President Daniel Chapo announced that Mozambique is integrating AI into early warning systems to better predict and respond to extreme weather. Speaking in Geneva, he said the country is digitalising meteorological services and linking national and regional platforms, though limited climate funding remains a challenge. Mozambique has seen a significant increase in the frequency and intensity of climate-related disasters. (Club of Mozambique)

Funding

Romeo Kumalo’s LLH Capital to back African AI ventures

#Africa #funding #ventures — LLH Capital, the investment firm of former Vodacom executive Romeo Kumalo, is targeting a $200 million (R3.5 billion) fund to support AI companies across Africa. The plan follows a lucrative exit from Optasia, the AI-powered fintech that listed on the JSE at R24.4 billion. (News24)

Optasia IPO yields $24m payday for bankers

#SouthAfrica #funding #finance — Optasia’s $374 million IPO on the JSE, its largest fintech listing to date, will see investment banks pocket up to $24 million (R416 million) in fees. Standard Bank (R50.685m), Morgan Stanley (R50.685m), Investec (R21.7m) and advisory Moelis (R199m) lead the payouts, with a discretionary bonus of R94 million possible for oversubscription success. (Moneyweb)

Education

Botswana drives STEAM education reform with UNESCO

#Botswana #education #policy — Botswana is overhauling its education system to focus on Science, Technology, Engineering, Arts and Mathematics (STEAM), Minister Nono Kgafela-Mokoka told the UNESCO general conference in Uzbekistan. The initiative, supported by UNESCO’s Tech-Spark Project, will boost digital competencies and innovation, while aligning with national AI policy development and the country’s AI readiness framework. (Daily News Botswana (gov))

LLMs

Uganda unveils homegrown AI language model

#Uganda #applications #language — Uganda has launched Sunflower, a locally developed AI language model by Sunbird AI that supports more than five indigenous languages, including Luganda and Ateso. Unveiled by ICT Permanent Secretary Dr. Aminah Zawedde, the model aims to make technology more inclusive across sectors such as health, education, and agriculture. (Ministry of ICT and National Guidance)

Policy

Morocco drafts ‘Digital X.0’ law to govern AI, data, and digital identity

#Morocco #AI #DigitalGovernance — Morocco is finalizing a new legal framework, “Digital X.0”, to regulate artificial intelligence, data governance, and digital identity. Introduced by Minister Amal El Fallah Seghrouchni, the bill sets rules for algorithmic transparency, data protection, and interoperability, forming part of the Maroc Digital 2030 strategy. (We Are Tech Africa)

Zambia debates AI’s social and environmental costs

#Zambia #policy #environment — The Zambia Alliance for Agroecology and Biodiversity hosted a public meeting in Lusaka to examine AI’s impact on local farmers, resources, and governance. Experts warned of rising data, energy, and mineral demands, calling it a “digital scramble for Africa.” Participants urged stronger biosafety and data protection laws to safeguard national sovereignty. (ZambiaAgroecology.org)

African CEOs optimistic as AI drives strategic transformation

#Africa #survey #AIadoption — African CEOs remain upbeat about growth prospects despite global and local challenges, with 78% expressing strong business confidence and 98% expecting short-term expansion, according to KPMG’s 2025 Africa CEO Outlook Survey. Generative AI tops strategic priorities, with 81% of leaders linking AI upskilling to business success. (Engineering News)

Datacentres

AI data centre boom exposes construction supply chain risks

#Africa #datacentres — Turner & Townsend’s 2025–2026 Data Centre Construction Cost Index warns that AI-ready data centres are outpacing supply chain capacity, with 83% of industry leaders saying local suppliers aren’t prepared for advanced cooling systems and 48% citing power availability as the top delivery risk. Lagos, Cape Town and Jo’burg are Africa’s costliest markets to build DCs ($10.50/W, $10.33/W and $10.06/W respectively), Nairobi cheapest at $9.74/W (Engineering News)

Algeria launches Dzair Services to unify public e-services under one platform

#Algeria #DigitalTransformation #eGovernment — Algeria has unveiled Dzair Services, a unified national platform that centralises all public digital services. The platform aims to simplify procedures, enhance data exchange and improve efficiency. A draft law has also been approved defining the general rules governing trust services for electronic transactions and digital identification.. (We Are Tech Africa)

Events

AI DAYS Tunisia 2025: Free two-day community AI conference

#Tunisia #events — Tunisia will host AI DAYS Tunisia on December 19–20, 2025 in Hammamet. The free community-driven event will feature workshops on model development, panels on ethics and regulation, startup showcases, and live demos exploring AI’s role in healthcare, education, and climate tech. Global experts from Microsoft AI and OpenAI are among the speakers. (Community Days)

[ This newsletter was human toasted and AI buttered ]